Trade between the Philippines and the European Union dipped last year, bucking an uptrend for the wider Southeast Asian region as firms “did not benefit as much” from opportunities.
“[T]he Philippines was the only ASEAN (Association of Southeast Asian Nations) country to experience a fall in exports to the EU … At the same time, the Philippines recorded the second lowest growth rate of EU exports to ASEAN countries, only slightly ahead of Malaysia (5.9%),” a fact file from the EU Delegation in Manila showed.
Total trade between the Philippines and the EU was said to have dropped by 0.6% to 9.1 million euros in 2011, with the country’s exports to the 27-nation bloc dropping by 5.4% to 5.1 million euros and imports gaining 6.3% to four million euros.
The EU’s total trade with the 10-member ASEAN, in comparison, grew by 9% to 162 billion euros in 2011. ASEAN exports to the EU also continued to expand last year, exapnding by 7% to 93 billion euros, while imports increased by a larger 12% to 68 billion euros.
Guy Ledoux, head of the EU delegation to the Philippines, said the decline was due to “a very significant slowdown of Philippines IT (information technology) products export of more than 20% globally.”
Philippine exports of IT products to the EU declined by 10% to three billion euros.
“For 2012, the IT industry in the Philippines is picking up again which will boost Philippines export to the EU. As a result it is very likely that we will see an increase of EU-Philippines trade,” Mr. Ledoux said.
According to the fact file, the Philippines also slipped to being the EU’s 46th largest trading partner last year, from 42nd in 2010.
In supplier terms, the country’s ranking slipped to 45th from 41st. In contrast, Vietnam rose three places to 27th and it now exports to the EU more than twice as much as the Philippines.
“However, as an export market for the EU, the Philippines’ ranking improved two places to rank 44, but its share remained at 0.3% of total EU exports, far behind most of its ASEAN neighbors, although similar to Vietnam’s share (rank 39),” the fact file states.
Sought for comment, Philippine Exporters Confederation, Inc. President Sergio R. Ortiz-Luis said the country lagged behind because “many of the ASEAN countries have strong relations with the EU as former … territories.”
“ASEAN countries enjoy special preferences from the EU. On the other hand, EU is not a natural market for the Philippines.”
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Source: BusinessWorld, May 30, 2012
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